Population growth has led to higher consumption of fossil fuel, and subsequently to a major increase of greenhouse gases emissions to the atmosphere, thus inducing global warming. Fossil fuel supplies are depleting, and the price of these fuels is increasing. Moreover, there are concerns about related emissions of toxic pollutants such as sulphur dioxide and aromatic hydrocarbons. Here, we review alternative fuel technologies. We focus on how membrane reactors improve the existing production processes of renewable fuels. Advantages and environmental benefits of membrane reactors are compared to the conventional techniques. Membrane reactors have been applied successfully to improve biodiesel, hydrogen and Fischer-Tropsch synthesis. Membranes help the conversion of products, whilst shifting the equilibrium of the reaction and reducing undesired by-products. Membrane reactors also overcome immiscibility issues that hinder conventional reactor processes. Overall, membrane reactors reduce cost and energy needed for the treatment of wastewater from fuel production.